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Conventional Loans in San Fernando
San Fernando sits in the northeast San Fernando Valley where most properties fall well within conforming loan limits. This makes conventional financing the default choice for buyers with decent credit and stable income.
The market here moves faster than outer Valley cities but stays accessible compared to west LA. Conventional loans close quicker than government programs, which matters when you're competing against multiple offers.
Most homes in San Fernando range from modest single-family properties to larger Valley estates. Conventional financing adapts to both scenarios with flexible down payment options and no appraisal restrictions.
You need 620 minimum credit for conventional approval, but 740+ gets you the best rates. Income matters less than debt ratios—keep total monthly debt under 43% of gross income.
Down payments start at 3% for first-time buyers through Fannie Mae HomeReady or Freddie Mac Home Possible. Put down 20% to skip mortgage insurance entirely.
Lenders verify two years of income history and want 2-6 months reserves depending on loan size. Self-employed borrowers need tax returns showing consistent income, not just bank deposits.
Rate spreads between lenders hit 0.5% or more on conventional loans in LA County. We shop 200+ wholesale lenders because that difference equals thousands over the loan term.
Some lenders price HomeReady aggressively to win market share. Others excel at 90% LTV investment properties or waive reserves for high-credit borrowers.
Portfolio lenders occasionally beat Fannie/Freddie pricing on specific profiles. Credit unions sometimes offer member discounts but restrict who qualifies for best terms.
San Fernando buyers often qualify conventional but choose FHA thinking it's easier. Wrong move if your credit tops 680—you'll pay higher insurance for no benefit.
I push clients toward 15% down over 10% when possible. The PMI savings outweigh the extra cash outlay within three years, and you gain stronger negotiating position.
Appraisals rarely kill deals here unless you're buying a fixer. But conventional allows value challenges and second opinions, which FHA doesn't permit.
FHA loans accept 580 credit and 3.5% down, but you'll pay mortgage insurance for the loan's life unless you refinance. Conventional drops PMI automatically at 78% LTV.
Jumbo loans kick in above $806,500 in LA County. If you're close to that threshold, conventional conforming costs less and approves easier with identical credit.
VA loans beat conventional for eligible veterans—zero down and no monthly PMI. But if you're not military, conventional offers the next best terms for qualified buyers.
San Fernando's older housing stock sometimes triggers appraisal issues with peeling paint or deferred maintenance. Conventional underwriting is stricter than VA but more forgiving than FHA on cosmetic issues.
Property taxes in LA County get reassessed at sale under Prop 13. Budget for the new basis when calculating monthly payments—many buyers forget this step.
HOA properties are common in newer San Fernando developments. Conventional lenders review HOA financials but rarely reject stable associations, unlike FHA's strict warrantability rules.
Minimum 620 for approval, but 740+ unlocks best rates. Most San Fernando borrowers with 680+ credit should choose conventional over FHA to avoid higher insurance costs.
First-time buyers start at 3% through HomeReady or Home Possible programs. Put down 20% to eliminate mortgage insurance entirely and strengthen your offer.
Yes, but the property must meet minimum appraisal standards at purchase. Consider a renovation loan if major repairs are needed before occupancy.
Conventional loans typically close 3-5 days faster with less appraisal scrutiny. Sellers prefer them in multiple-offer situations common throughout San Fernando.
LA County conforming limit is $806,500 for 2024. Above that amount, you'll need jumbo financing with stricter requirements and typically higher rates.
Mortgage financing for independent contractors and freelancers who earn 1099 income instead of traditional W-2 wages.
Mortgage programs that allow borrowers to qualify based on liquid assets rather than traditional employment income.
Non-QM loans that use 12 to 24 months of bank statements to verify income for self-employed borrowers.
Short-term financing that bridges the gap between buying a new property and selling an existing one.
Debt Service Coverage Ratio loans that qualify investors based on a rental property's income rather than personal income.
Mortgage programs designed for non-US citizens and non-permanent residents who want to purchase property in the United States.
Asset-based short-term loans primarily used by real estate investors for property acquisition and renovation projects.
Mortgages that allow borrowers to pay only the interest for an initial period, resulting in lower monthly payments upfront.
Financing solutions tailored for real estate investors purchasing rental properties, fix-and-flip projects, or investment portfolios.
Home loans for borrowers who have an Individual Taxpayer Identification Number instead of a Social Security number.
Adjustable rate mortgages held in a lender's portfolio rather than sold on the secondary market, offering more flexible terms.
Non-QM mortgages that use a CPA-prepared profit and loss statement to verify income for self-employed borrowers.
Home loans with interest rates that adjust periodically based on market conditions after an initial fixed-rate period.
Specialized mortgage programs designed to support homeownership in underserved communities with flexible qualification criteria.
Mortgages that meet the guidelines and loan limits set by Fannie Mae and Freddie Mac for secondary market purchase.
Financing for building a new home or making major renovations, typically converting to a permanent mortgage upon completion.
Innovative loan products that leverage projected home equity growth to provide favorable financing terms.
Government-insured mortgages from the Federal Housing Administration with low down payments and flexible credit requirements.
A revolving line of credit secured by your home equity that allows you to borrow funds as needed during a draw period.
A fixed-rate second mortgage that provides a lump sum of cash by borrowing against the equity built in your home.
Mortgages that exceed the conforming loan limits set by the FHFA, designed for financing high-value luxury properties.
Loans for homeowners aged 62 and older that convert home equity into cash without requiring monthly mortgage payments.
Government-backed zero down payment mortgages for eligible rural and suburban homebuyers who meet income limits.
Government-guaranteed mortgages for eligible veterans, active-duty service members, and surviving spouses with zero down payment.